DEPARTMENT: PRACTICAL BUSINESS LAW
CAMPUS: APB & SWC
MODULE: BUSINESS LAW 1B
DUE: 07 – 11 AUGUST
Exercise 2- The contract of Lease__________________
QUESTION 1
Answer the following questions by choosing the most appropriate answer or statement in each
instance. There is only one correct answer per question.
1.1 Choose the CORRECT statement in respect of lease agreements. (2)
a. lessee has the right to use and enjoy the fruits of the leased property and to consume,
alienate, or destroy the property.
b. A lessee must receive full and exclusive rights to the use and enjoyment of the leased
property.
c. If the essentialia of a contract of lease are not met, the contract will be voidable.
d. In order for a long-term lease to be valid it must be in writing and notarially executed.
e. The intention of the parties in a contract of lease is that the lessee will use and enjoy
the property only for certain or ascertainable period of time.
1.2 The following are the duties of the lessor: (2)
a. The duty to deliver the leased object to the lessee, the duty to ensure the lessee's
undisturbed use and enjoyment and the duty to maintain the object to the lease.
b. The duty to deliver the leased object to the lessee, the duty to pay for the lease
agreement and the duty to ensure the lessee's undisturbed use and enjoyment.
c. The duty to pay for the lease agreement, the duty to maintain the object to the lease
and the duty to deliver the leases object to the lessee.
d. The duty to deliver the leases object to the lessee, the duty to pay for the lease
agreement and the duty to maintain the object to the lease.
e. The duty to pay rent, the duty of proper use and care and the duty to return the
property undamaged.
1.3 Jaco leases three of the offices in his building to XYZ Law Firm. The lease agreement
stipulates that it may only be used as a Law Firm. Upon inspection of the premises, in
order to comply with his duties as a lessor, he notices that the XYZ Law Firm is using one
of their offices as a second-hand book shop. Jaco can – (2)
a. cancel the contract and evict XYZ Law Firm.
b. claim damages.
c. interdict XYZ Law Firm to prohibit them from misusing the offices as a shop.
d. All of the above are correct.
e. b and c are correct.
1.4 John rents his apartment to Pamela. Her rent has been in arrears since May this year.
However, she pays all the outstanding rent a day before John exercises his remedy known
as a landlord’s tacit hypotech over Pamela’s movable property on the premises. John: (2)
a. may attach any goods belonging to Pamela which were brought onto the premises
in order to secure payment for future rentals given Pamela’s poor record of
payment.
b. loses his right to exercise a hypotech which automatically lapses upon payment.
c. may exercise a hypotech over Pamela’s movable property in respect of
outstanding interest for the period of the arrears which should be implied in the
agreement.
d. None of the above.
e. All of the above.
1.5 Identify the INCORRECT statement with regard to sub-letting in a contract of lease – (2)
a. There is a contract between the landlord and the tenant.
b. There is a contract between the tenant and the sub-lessee.
c. There is a contract between the landlord and the sub-lessee.
d. The lessor may not unreasonably withhold consent.
e. The lessor must give consent if required by the contract.
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QUESTION 2
2.1 Provide the essentialia for a contract of lease. (3)
2.2 List any two (2) duties of the lessee. (2)
2.3 List 5 ways in which a contract of lease may be terminated. (5)
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QUESTION 3
3.1 Sipho leases his house to Mandla for R5000 a month for a period of two years. The house
is leased for residential purposes but Mandla, an aspiring DJ, decides to turn the house
into a hip-hop club.
3.1.1 Name and briefly explain which duty Mandla will be in breach of. (3)
3.1.2 What remedies are available to Sipho. (3)
3.1.3 Upon expiration of the lease, Sipho finds that all of the windows in the house are
broken, some of the cupboard doors are missing and the walls contains graffiti.
What duty is Mandla in breach of? (1)
3.2 Mona leases a house from Itumeleng. The bathroom wall has collapsed after a heavy
rainstorm, the shower leaks and the oven has stopped working after an electrical power
surge. Itumeleng fails to make the necessary repairs to the house after numerous
requests.
3.2.1 Name the duty which Itumeleng has breached and give a brief explanation
thereof. (2)
3.2.2 List any remedy available to Mona. (1)
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QUESTION 4
4.1 Aphiwe is renting a house from Lorna for a period of 24 years. This lease is registered
against the Title Deed of the Property. After a period of eight years Vuyiswa buys the
house from Lorna. Vuyiswa informs Aphiwe that he must vacate the premises within one
week in order for her to move in.
4.1.1 Indicate whether this lease amounts to a long term or short-term lease agreement
and provide a reason for your answer. (2)
4.1.2 Identify and discuss the defence which Aphiwe can use in order to remain on the
leased premises after it has been sold. (4)
4.2 Andy is currently renting a warehouse in Johannesburg CBD from Factories Unlimited.
He failed to pay his monthly rent for a period of five months.
Name and discuss the most appropriate remedy available for Factories Unlimited. (4)
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GRAND TOTAL: 40
The end